Mr. Harra was asked how HMRC is ensuring compliance with the CJRS, and to give a prediction on the amount of error and fraud. Ordinarily, past evidence would be used as the basis on which to estimate future fraud and error levels, but as the CJRS has only recently been implemented, in rapid response to the outbreak of coronavirus, there is no such evidence available. HMRC has, therefore, utilised evidence of fraud in the tax credit scheme, as this is the best possible grant and benefit scheme for comparison. The comparison techniques being used are less than ideal as the people that apply for the tax credit scheme are very different to employers who are applying for the CJRS. HMRC has also warned that the nature of the threat to the UK economy is different to anything that has ever been observed in the past. It is expected that the level of error and fraud could sit anywhere between 5-10%, but this comes with the caveat that the CJRS, again, is unlike anything that the UK has ever seen before. HMRC has already put preventative measures in place to attempt to combat fraud, through the design of the system, and the fact that HMRC is involved in the process prior to payments being made. Updates will be provided, along with associated figures, at the end of 2020 and then again in Spring 2021. It is HMRC’s intention to release a publication detailing the full estimate of error and fraud, in 2022.
More information about these subjects can be heard in the recording.
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Quick Poll results: 52% confirm that they have had to adapt their processes to ensure compliance with the CJRS and record checking due to the eligibility for the Job Retention Bonus 10 September 2020 In the final of a trilogy of questions on the topic of the Job Retention Bonus, the CIPP’s Policy and Research team launched a Quick Poll which asked if payroll teams have had to amend their processes in order to ensure compliance with the Coronavirus Job Retention Scheme (CJRS), and to confirm that their employee records are up-to-date, as accuracy is key when considering eligiblity for the Job Retention Bonus.
Gov.UK guidance on the Job Retention Bonus clearly states:
“Employers should ensure that their employee records are up-to-date, including accurately reporting their employee’s details and wages on the Full Payment Submission (FPS) through the Real Time Information (RTI) reporting system. Employers should also make sure all of their Coronavirus Job Retention Scheme claims have been accurately submitted and any necessary amendments have been notified to HMRC.”
The question on the News Online page asked:
“Have you had to change your processes to ensure full compliance with the Coronavirus Job Retention Scheme and record checking due to the eligibility criteria for the Job Retention Bonus?”
Yes: 52% No: 48%
Whilst there isn’t a massive difference in the response rates, the majority of respondents have confirmed that they did indeed have to change their processes. This suggests that many of those who have claimed under the CJRS may have submitted erroneous claims and / or that they have needed to check all of their employee records in order to guarantee that all information is accurate and up to date. For those who have not needed to alter their processes, they will have had to guarantee that they had robust audit and checking processes in place, to prevent the withholding of bonus payments, or the need to repay any CJRS overclaims.
The Job Retention Bonus will be payable to eligible businesses who bring furloughed staff back to the office, from November 2020 until January 2021, and pay an average of £520 per month.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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